Under the amended personal income tax law, approved by the National Assembly on 10/12, income from gold bar transfers will be subject to a 0.1% tax on the value of each transaction.

The National Assembly has assigned the government to stipulate the threshold for taxable gold bar values and the effective date. The government is also responsible for adjusting this tax in line with the roadmap for gold market management.

In its explanatory report submitted before the National Assembly voted on the law, the government stated that applying a transfer tax on gold is a necessary step. It will help curb gold speculation and attract social resources to participate in the economy.

Assigning the government to regulate the taxable value threshold for gold bars aims to exclude individuals who buy and sell gold for savings or storage. This aligns with the current custom of a segment of the population accumulating gold for safekeeping.

Previously, the verifying agency recommended that the government carefully consider applying the tax on gold bar transfers to avoid disadvantages for individuals not engaged in speculation or business. The government was also urged to clearly distinguish between short-term trading and long-term hoarding to ensure the objective of controlling speculative activities and fostering a healthy market.

While taxation is an effective market regulatory tool, it has never been applied to gold in Vietnam. Analysts suggest that taxing the precious metal could generate revenue for the state budget and establish fairness compared to other investment channels like stocks and real estate. This measure would also help counter the "goldization" of the economy, as buyers would need to factor in holding periods, anticipating profits or losses based on global and domestic price fluctuations, and the payable tax amount.

Fluctuations in the domestic gold market have been a significant concern for many delegates during discussions at this session. Gold prices have risen sharply recently, with the difference between domestic and international gold prices sometimes exceeding 20 million VND per tael.

To stabilize the market, the government has implemented several measures, including increased inspections. Since 10/10, the state's monopoly on gold bar production has been abolished. Additionally, the State Bank of Vietnam is researching a legal framework for a gold exchange, which will be submitted to the government. This model is anticipated to enhance transaction transparency and assist the government in managing the gold market.

Opening on the morning of 10/12, SJC gold bars at Saigon Jewelry Company (SJC) increased by one million VND per tael compared to yesterday, reaching 152,7-154,7 million VND per tael. The difference between domestic and international gold bar prices was over 20 million VND.

Anh Tu